News & Announcements

October 14, 2024

Status of recordkeeping support for SECURE 2.0 Act provisions

The SECURE 2.0 Act marked a significant step toward enabling more small business owners and employees to pursue retirement stability.

Outlined below is the status of our recordkeeping support for some key SECURE 2.0 provisions (sections). You can share this information with your clients ― whether they have an existing retirement plan or they’re considering starting one ― to help them take advantage of the benefits from this legislation.

For a better understanding of these provisions, including our perspective on the potential impacts, refer to SECURE 2.0 ― More of a good thing (PDF).

Provision

Effective date 

Recordkeeping status

Qualified disaster recovery distributions

Section 331 (optional)

Effective for disasters occuring on or after January 26, 2021 

Ready to support

Employer Roth contribution option

Section 604 (optional)

Effective for contributions made after December 29, 2022 

Intend to support in 2025

We’re evaluating solutions based on IRS guidance.

Terminal illness early distribution penalty tax exception

Section 326 (optional)

Distributions made after December 29, 2022 

Ready to support

Fewer notices for unenrolled employees

Section 320 (optional)

Plan years beginning after December 31, 2022 

In progress

We plan on developing a new notice template to assist plan sponsors in preparing the required participant notification for those who decide to take advantage of this change. We’re also evaluating our automated notice delivery process to potentially incorporate this notice type.

Relaxed required minimum distribution (RMD) rules ― age and penalty adjustments

Section 107 (mandatory)

Effective for RMDs required to be made after 2022 for individuals who turn age 73 after December 31, 2022

Ready to support

Self-certification for hardship withdrawals

Section 312 (optional)

Plan years beginning in 2023

Intend to support in 2025

We’re developing a solution to accommodate plans that decide to offer self-certification hardship withdrawals. More information will be communicated on this process in the near future.

Emergency Roth savings accounts

Section 127 (optional)

Plan years beginning after December 31, 2023

Evaluating

We’re monitoring the demand for in-plan emergency savings accounts. Our early research and surveys indicate that there is not a high level of interest.

Hardship distribution change for 403(b) plans

Section 602 (optional)

Plan years beginning after December 31, 2023

Ready to support

We support hardship distributions from earnings on elective deferrals and from qualified non-elective contributions and qualified matching contributions, as well as earnings from these sources.

Higher dollar limit for mandatory distributions

Section 304 (optional)

Distributions made after December 31, 2023

Ready to support

Domestic abuse distributions

Section 314 (optional)

Distributions made after December 31, 2023

Ready to support

Distributions for certain emergency expenses

Section 115 (optional)

Distributions made after December 31, 2023

Evaluating

We’re evaluating solutions based on IRS guidance.

RMD treatment of Roth amounts ― Roth balance exclusion

Section 325 (mandatory)

Taxable years beginning after December 31, 2023, but not to distributions which are required with respect to years beginning before January 1, 2024, but are permitted to be paid after such date

Ready to support

 

Student loan payments as elective deferrals

Section 110 (optional)

Plan years beginning after December 31, 2023 

In progress

We’re evaluating what’s needed to facilitate student loan matching. Our existing functionality allows plan sponsors to remit matching contributions when they independently verify that student loan payments have been made.

Required automatic enrollment and auto escalation

Section 101 (mandatory)

Plan years beginning after December 31, 2024

Ready to support

Wider plan eligibility for part-time workers

Section 125 (mandatory) 

Plan years beginning after December 31, 2024

Ready to support

Note: This provision doesn’t supersede SECURE 1.0’s eligibility rules for 401(k) plans, so workers may qualify for plan eligibility under the three-year rule as soon as 2024 or the two-year rule in 2025.

Higher catch-up contribution limit for ages
60 to 63

Section 109 (optional)

Plan years beginning after December 31, 2024

Ready to support

Required Roth catch-up contributions for high-income earners

Section 603 (mandatory) 

Taxable years beginning after 2025

Ready to support

IRS guidance has delayed this requirement from 2024 to 2026. If your plan allows catch-up but not Roth contributions, we encourage you to add Roth contributions now and ensure that your payroll vendor is prepared for the change.

Starting in 2026, we’ll offer warnings during payroll processing for participants age 50+ who are high earners and approaching the 402(g) contribution limit.

We plan to have the ability to recharacterize pre-tax deferrals to Roth to further support this provision.

Provision

Effective date 

Recordkeeping status

Qualified disaster recovery distributions

Section 331 (optional)

Effective for disasters occuring on or after January 26, 2021

Ready to support

Employer Roth contribution option

Section 604 (optional)

Effective for contributions made after December 29, 2022

Intend to support in 2025

We’re evaluating solutions based on IRS guidance.

Terminal illness early distribution penalty tax exception

Section 326 (optional)

Distributions made after December 29, 2022

Intend to support in 2025

Fewer notices for unenrolled employees

Section 320 (optional)

Plan years beginning after December 31, 2022

In progress

We plan on developing a new notice template to assist plan sponsors in preparing the required participant notification for those who decide to take advantage of this change.

Relaxed required minimum distribution (RMD) rules ― increased age triggering required beginning date

Section 107 (mandatory)

Effective for RMDs required to be made after 2022 for individuals who turn age 73 after December 31, 2022

Ready to support

Self-certification for hardship withdrawals

Section 312 (optional)

Plan years beginning in 2023

Intend to support in 2025

We’re developing a solution to accommodate plans that decide to offer self-certification hardship withdrawals. More information will be communicated on this process in the near future.

Emergency Roth savings accounts

Section 127 (optional)

Plan years beginning after December 31, 2023

Evaluating

We’re monitoring the demand for in-plan emergency savings accounts. Our early research and surveys indicate that there is not a high level of interest.

Hardship distribution change for 403(b) plans

Section 602 (optional)

Plan years beginning after December 31, 2023

Ready to support

We support hardship distributions from earnings on elective deferrals and from qualified non-elective contributions and qualified matching contributions, as well as earnings from these sources.

Domestic abuse distribution

Section 314 (optional)

Distributions made after December 31, 2023

Intend to support in 2025

Distribution for certain emergency expenses

Section 115 (optional)

Distributions made after December 31, 2023

Available November 1, 2024

Higher dollar limit for mandatory distributions

Section 304 (optional)

Distributions made after December 31, 2023

In progress

We’re in the process of updating our Automatic IRA agreement to reflect the higher limit and expect to support this new limit. 

RMD treatment of Roth amounts ― Roth balance exclusion

Section 325 (mandatory) 

Taxable years beginning after December 31, 2023, but not to distributions which are required with respect to years beginning before January 1, 2024, but are permitted to be paid after such date

Ready to support

Student loan payments as elective deferrals

Section 110 (optional)

Plan years beginning after December 31, 2023

In progress

We’re evaluating what’s needed to facilitate student loan matching. Our existing functionality allows plan sponsors to remit matching contributions when they independently verify that student loan payments have been made.

Required automatic enrollment and auto escalation

Section 101 (mandatory)

Plan years beginning after December 31, 2024

Ready to support

Wider plan eligibility for part-time workers

Section 125 (mandatory)

Plan years beginning after December 31, 2024

Ready to support

 

Higher catch-up contribution limit for ages
60 to 63

Section 109 (optional)

Taxable years beginning after December 31, 2024

Ready to support

Required Roth catch-up contributions for high-income earners

Section 603 (mandatory)

Taxable years beginning after 2025

Ready to support

Plans can add Roth deferrals or remove catch-up contributions at any time. In 2025, we will introduce the ability to recharacterize pre-tax deferrals to Roth to further support this provision.

We encourage your clients to have a conversation with their payroll provider to ensure they’re prepared for Roth contributions and talk to their TPA about any necessary plan document amendments.

Provision

Effective date 

Recordkeeping status

Relaxed required minimum distribution (RMD) rules

Section 107 (mandatory)

Effective for RMDs required to be made after 2022 for individuals who turn age 73 after December 31, 2022

Ready to support

Roth ― Employee deferrals

Section 601 (optional)

Taxable years beginning after December 31, 2022

Ready to support new SIMPLE IRA Plus plans. Existing SIMPLE IRA Plus plans need to amend the plan to offer Roth employee deferrals starting 1/1/25.

Coming 1/1/25 for new SIMPLE IRA plans. Existing SIMPLE IRA plans need to amend the plan to offer Roth employee deferrals starting 1/1/25.

In progress for SEP IRAs. We’re monitoring demand and evaluating solutions. 

Roth ― Employer contributions

Section 601 (optional)

Taxable years beginning after December 31, 2022

In progress

We’re evaluating solutions based on IRS guidance.

SIMPLE IRA contribution limit changes

Section 117 (mandatory)

Taxable years beginning after December 31, 2023

Ready to support

SIMPLE IRA nonelective employer contributions

Section 116 (optional)

Taxable years beginning after December 31, 2023

Ready to support

Replace SIMPLE IRA w/ Safe Harbor 401(k) plans during the year

Section 332

Taxable years beginning after December 31, 2023

Ready to support

Student Loans matching contributions

Section 110 (optional)

Taxable years beginning after December 31, 2023

Ready to support

Higher catch-up contribution limit for ages
60 to 63

Section 109 (optional)

Taxable years beginning after December 31, 2024

Ready to support

RETIREMENT RESOURCES

Start a client conversation

Use SECURE 2.0 Act of 2022 ― A boost to retirement saving (PDF) to highlight key provisions that could benefit your clients. 


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